A common scenario, however, is for a VC to buy 20% of a company, where that might look like this:
– pre-money company valuation: $5 million
– VC investment: $1 million
– post-money company valuation: $6 million
– founder equity stake: 80%
– VC equity stake: 20%

Bolstered by the many home renovation shows that dot the TV landscape, the recent housing boom has spawned a lot of interest in making money, by renovating a fixer-upper and selling it at a higher price.